Federal Workers Getting Laid off Good or Bad?

As the economy continues to make a down turn more and more federal workers are being laid off. However, America being the great country that it is has provided its citizens with a safe guard for those who have lost jobs. This type of security helps to put many American minds at rest. But when the number of people that get laid off exceeds a normal amout, is this security necessary? Or for another matter, affordable? This Friday, April 8 there are expected to be 2 million workers respectfully layed off from their jobs. Unemployment benefits do not simply come out of thin air, they come from the taxes other Americans have paid. When the unemployment rate rises at such a sharp incline (as demonstrated today) the demand for taxes will without a doubt increase. These workers who believed were being protected by these unemployment benefits will end up having to pay for it themselves through taxes. One must ask themselves, is laying off this many workers going to truly help this economy or simply set us back once again?

-Kinsey Budagher

New Wireless Internet, New Possibilities

According to Associated Press Writer Joan Lowy, there is a new wireless internet network, LightSquared, that could potentially threaten the GPS’s we use throughout America and the lifestyle we have grown familiar to.  It is so powerful it has the ability to interfere with GPS used in airplanes, cars and such that the government uses.  This new wireless network is so powerful that the Federal Communications Commission plans to help the economy by stimulating it with the new network.  They say that it would “bring faster and cheaper Internet connection to all Americans – even in remote corners of the country.” This could be a good or a bad thing for our economy.  It will stimulate and encourage consumers to join this new network, which would reduce the demand for other companies, creating a shift in demand.  Such a change could really weaken our economy as well by weakening other, current companies.  On the contrary, entrepreneurs and companies have the ability to create complements to be used with the new wireless network that will knock out all other completion and bring in more profit.  But at this moment, government is playing a role in regulating the company and requiring them to make sure that before they launch their new wireless internet network, they must be sure that it will not affect the GPS systems.  This new production and invention could either be a smart tradeoff for all or a dangerous new creation. At the moment, the risks are too extreme and for that, Americans will not be able to test out this new incredible wireless internet until all other issues are fixed. 

-Haley R

iPad 2 Supply Begins To Creep Closer to Demand

http://www.computerworld.com/s/article/9215476/iPad_2_supplies_creep_closer_to_demand&vm=r

According to current reports demand for the iPad 2 is now starting to move closer towards the amount of supply of Apple iPads. Apple is promising consumers the delivery of their iPads in 2 to 3 weeks now rather than 3 to 4 weeks. When apple was promising consumers the delivery of their Apple iPad in 3 or 4 weeks supply was not able to keep up with the demand. This struggle of supply to keep up with the increasing demand of the Apple iPad 2 was moving Apple farther away from equilibrium and in turn reducing the firm’s profit. The excessive demand is a result of supply being too low. There are a couple of Global reasons why Apple’s Supply chain is most likely less than normal. The tsunami in Japan that happened in March as well as the problems at one of the country's nuclear power plants are large factors that economists are speculating as factors that have caused this change in Apple’s supply chain. As a result of the Apple’s lack of supply of iPad 2s, people have been selling iPad 2’s for between 40%-53% more than market price.

-Lizzie Sanders

3-D Phone

In entertainment, the introduction of 3-D products is prominent. There have been 3-D movies, television and now 3-D phones. However, there is a special difference between the phone and previous 3-D products. The new 3-D phone will not require its users to wear glasses. Some may say that this can change the way people look at 3-D products completely. The biggest complaint I have heard about 3-D is the fact that they don't want to wear the 3-D glasses. So it would be appropriate to ask whether or not 3-D products will be more successful if the glasses aren't needed. Most likely, ditching the glasses, companies will have an easier time selling the product because users would not have to deal with the disadvantage of the 3-D glasses. In other words the trade-off would be eliminated. Users will no longer have to wear 3-D glasses that many dislike in order to view entertainment products in TV. This advantage will change the view on 3-D products, hopefully making them more successful and user friendly. If consumers respond positively to the new 3-D phone it could benefit the economy in the same way the iphone or android has done. In other words, the demand for this new 3-D phone will have the same effect as the iphone/android had. If the 3-D phone is just as successful, the possibilities the product can have is endless. New 3-D apps and games will be in store for its users making 3-D products a new industry. If the new phone is successful then the demand for all 3-D products could increase as well. The 3-D phone could be the new product that makes 3-D even more successful.

-Alanna

BP Oil

BP is in the process of making a deal with the US government to allow them to start drilling in the Gulf of Mexico – only about a year after, their oil wells exploded. Although they can’t drill any new holes, lowering chances of another spill, drilling in already established holes still could cause a spill and have consequences that BP does not want to deal with again. Should we afford to risk another oil spill just so we can get some oil from a United State’s company instead of an international one? BP has had to supposedly set aside $40 billion to cover the costs of the spill from last year – the one that killed 11 workers. They are apparently taking more time effort and money to be safer and take more precautions when going back out. I think that it will be good for more oil to be coming in from our own companies yes, but because of their reputation I am not sure how much help it will actually help. How much extra money will it take for “precautions” to be taken on top of the $40 billion? For BP it will be good for them to start drilling again, but everyone will be keeping an eye on them to see if they are more careful this time around.

http://www.nytimes.com/2011/04/04/business/energy-environment/04bp.html?src=busln

McDonald’s To Hire 50,000 April 19th

This idea of hiring 50,000 employees is a great way to help stimulate the economy. The excess demand for jobs is so extreme in America since the economic downfall in 2008, there is a desperate need for more supply of jobs. The demand for jobs far precedes the supply of jobs in America today. By hiring workers at McDonalds it will create more opportunity for people to be hired to other jobs because the demand will decrease as more workers are hired at McDonalds.  Workers hired at McDonalds will be given $8.30 per hour, which is a dollar and ten cents higher than minimum wage which is $7.20. Hopefully this will be a motive for people to gravitate towards applying to work at McDonalds. This will help the economy move the issue of demand of job opportunities vs. supply of job opportunities more towards economic equilibrium and farther away from America’s current economic issue of excess demand of jobs. Perhaps this will increase McDonald’s current marginal product of labor meaning that by increasing the number of employees hired, there will also be an increase in output of product. By increasing the output of product McDonald’s will also increase their revenue.

- Lizzie S

Health or Money?

http://healthland.time.com/2011/03/21/the-new-cost-of-preventing-prematurity-will-kv-back-off-the-high-price-of-makena/

http://healthland.time.com/2011/03/30/fda-will-allow-cheaper-version-of-pregnancy-drug-to-be-sold/

This is a great example of the potential downfalls of excess demand. This medicine limits the risk of premature birth, which is a fantastic leap in medical advancements, because of all the potential dangers of premature birth. However, this good was going to be sold at $1500, which is not affordable for many. I think, that the price should be lowered because of how essential this product could be in insuring the health of newborn babies. Unfortunately, if the price is lowered, there will be excess demand, and not everyone will be able to purchase this product, because the suppliers will not be willing to produce that much of a good at a lower price. I think that this is the perfect example of an indispensible good that is too expensive at market price, but if the price is lowered, there will not be enough of the good. Our group believes that if some sort of incentive was offered to the producers of the good, then this medicine could be supplied to all expecting mothers, which would be an amazing step in health. This article points out an uncomfortable position that this puts the parents in. They must choose between the health of the baby and their financial security. Because the demand for products ensuring the health of their babies is inelastic, the effect on the economy in the short term will be negative, because parents will be spending more on this medication and less on other goods. Hopefully, this will encourage companies to create a product that is inexpensive that produces the same result as this medicine.